EURO / US DOLLAR

Classical Outlook: Price action remains extremely choppy with the market whipsawing between 1.4000 and 1.4340 in recent trade. However, at this point it appears as though bulls are winning out, with any pullbacks easily met by intense buying. A closer look at the weekly suggests that we are on the verge of another major upside break following consolidation since May, which if broken, would project gains towards 1.5000. Look for a break above 1.4340 and close above the 100-Week SMA to confirm. Elliott Wave Outlook: Last week, I wrote that “a 4th wave triangle is complete at1.3877 and the next expected move is a terminal thrust (higher) above 1.4340 and maybe 1.4720.” Today’s strong rally inspires confidence in a break next week. Again, expectations are for the rally to end above 1.4720.